University Business - December 2012 - (Page 30)

sponsored web seminar digest Tuition Policies that Address Affordability and Retention A University Business Web Seminar Digest • Originally presented on October 16, 2012 By offering actively managed tuition payment plans, Nelnet Business Solutions helps colleges stabilize enrollment, increase collections and improve customer service. The issues of affordability and retention challenge colleges to develop sustainable tuition policies that address the current economic climate yet educate students on the importance of paying their tuition bills on a timely basis. This web seminar discussed how Nelnet’s solutions, combined with tighter school fiscal policy, can help students meet their tuition obligations even if they do not receive all the financial aid they anticipated. Michigan’s Kellogg Community College explained how they use Nelnet’s Pending Aid plan to decrease outstanding student receivables even when faced with increasing enrollment and rising tuition costs. be able to collect what is owed to them. This is greatly affected by tuition policy. Nelnet suggests colleges think through the following questions: • Do you have an effective drop or deregistration policy? • Do you allow students to attend class while financial aid is pending? • How do you collect money from students who do not receive 100 percent of the aid they applied for? • What happens when a financial aid student drops out and you need to return aid? At some schools, administrators meet and decide whether or not to put a hold on a particular student’s account based on an appeal or special circumstances. However, this is counter-productive compared to a consistent business process backed up by school policy. Further, there have been many stories of students registering for classes, receiving Financial Aid, dropping the classes, and taking the money. This leaves the college with a Title IV return and an uncollectable account balance. To prevent such situations, it is important that the college offer proactive solutions to students. By aligning policies with business processes, and communicating them effectively to students and their families, schools can create a positive balance between affordability, retention, managing the collection process, and customer service. To enhance student success, many colleges turn to third-party providers to leverage additional customer support. For example, Nelnet’s call centers have extended customer-service hours and students can access their web account 24/7. By incorporating real-time integration with your student information systems, students are able to see exactly how much they owe when they are ready to make their payment commitment. Further, providers like Nelnet can improve affordability by spreading payments out and offering multiple plan options. Our system allows students or their parents to pre- John Edwards Regional Vice President Nelnet Business Solutions Students need more affordable options to start and continue their college studies so they can complete their education and be prepared for the workforce. Nelnet offers solutions that make this easier for institutions, particularly actively managed tuition payment plans. We make administrative and financial processes more efficient at 700 campuses across the nation. Different factors impact affordability in higher education. College costs are rising, state funds are declining. A 2011-2012 study found that 37 states are projecting spending less on education in the coming year than they did in 2008. New financial aid rules tying aid closer to performance are impacting its disbursement; Family income is unstable due to unemployment and the uncertain economy. Some families are turning to community colleges as a lower-cost alternative to public four-year institutions. A College Board report found that the average tuition at a two-year college is approximately 64 percent lower than tuition at a public four-year school. As a result, students whose families make less than $60,000 a year make up approximately 55 percent of community college enrollment across the country. To serve students from an affordability and retention perspective, schools have to be more certain they will

Table of Contents for the Digital Edition of University Business - December 2012

University Business - December 2012
Contents
Editor’s Note
College Index
Ad Index
Behind the News
Money Matters
Independent Outlook
5 Reasons Flipped Classrooms Work
Test Driving Mobile
Open Source Myth Busters
Models of Efficiency
1st Annual Readers’ Choice Awards
Education Innovators
Viewpoint
Endowments: New Questions
End Note

University Business - December 2012